JUDGEMENT

(a) Income Tax Ordinance (XXXI of 1979)----Ss. 2(8), 2(26)(c) Expln., 9(1A) & First Sched., Part V, Para. B--­Modaraba Companies Rules, 1981, R.2---Assessment year---Income year---Determination of first assessment year---Exemption---Application of reduced rate---Minimum subscription certificate was obtained by the Modaraba as on 11th of April, 1990 and-closed its account for the first year on 30th June, 1991---Assessee contended that since the first account; were closed on 30th June, 1991 the first assessment year involved was the assessment year 1991-92 and no tax should have been charged on the Madaraba income for the assessment year 1993-94 as provided in S.9(1A) of the Income Tax Ordinance, 1979---Validity---First assessment year was the assessment year 1990-91---Income of Modaraba was exempt under specific circumstances for the assessment years 1990-91, 991-92 and 1992-93---First Appellate Authority rightly upheld the departmental view that income of the Modaraba for the a...